The government does not fear reforms and will forge ahead with them, placing energy high on the agenda, Prime Minister Lawrence Gonzi said yesterday, stressing that the country cannot keep depending solely on oil.
"Let us carry on with reforms properly and without procrastination or else we'll have to pay a higher price in the future," he said.
The statement, which closed the PN's general conference, comes before a crucial meeting at the Malta Council for Social and Economic Development on Wednesday, where the government is expected by social partners to modify its proposals on raising utility tariffs.
The proposals, which according to the government's own estimates could see the majority of households forking out €76 to €270 more per year than is currently paid on bills with a 95 per cent surcharge, were severely criticised by social partners which have formed a broad common front in their opposition.
With this in mind, Dr Gonzi said yesterday that the government is not bound by the proposals it made on October 1, particularly because oil prices have since fallen. In fact, he added that the Finance Minister is preparing new proposals.
"We need a system which responds to economic realities, finding the necessary balance to safeguard large factories, tourism and farming but not at the expense of the economy," he said, responding to the primary argument made by social partners in the past weeks - that the present proposals would send shockwaves through the economy.
The Prime Minister said the current energy tariffs need to be revised and efforts to save energy recognised, with the government finding the means to help those who strive to use alternative energy. Moreover, tariffs need to respond to market fluctuations.
"Why should we help, from our taxes, those who do not care? Those who waste a lot of energy should pay for it while those who are careful and invest in alternative energy should benefit. We need to find sustainable solutions."
Beyond the actual bills, however, Dr Gonzi focused primarily on the alternative energy projects that the government will be proposing. He mentioned the shallow-water wind farm at Sikka l-Bajda, which will generate enough energy for 21,000 families, and the electricity cable which will link Malta with Sicily, as two solutions to the country's energy needs.
"We have an agenda of change needed by the country, and we don't need to be scared," he said, pledging that his party will do its best to fulfil all its pre-electoral promises "at the right time".
The council also focused on the international financial crisis, described by Dr Gonzi as an "unprecedented cataclysm" the extent of which had not been foreseen and which is worrying the government, especially because of risks to exports and tourism.
Earlier, Finance Minister Tonio Fenech said the country had managed to keep its footing in the midst of the turmoil because of sound decisions taken in the past. But he insisted that Malta will not be shielded from the impending recession and needs to respond to the current situation in which big economies are crumbling.
The council yesterday also remembered Labour MP Karl Chircop, who was buried on Saturday, with resounding applause. He was described by Dr Gonzi as a politician who was appreciated by people grateful for the existence of integrity in politics.